PayGo Energy
Location
Sector
Energy
Type of Investment
Risk Capital
Project Stage
Exited
Length of Investment
2016-2023
Website
Investment Overview
An $800,000 investment in PayGo Energy, which uses Pay As You Go technology to bring clean cooking fuel to homes in Nairobi, providing an uninterrupted supply of affordable gas to customers.
The Development Challenge
Kerosene and charcoal use has long been associated with adverse health and environmental risks including burns, poisoning, respiratory diseases, and cataracts, and while liquefied petroleum gas (LPG) has been proven to be a cleaner alternative, low-income urban consumers are priced out of making this switch due to the upfront and recurring costs.
The Innovation
PayGo Energy is a distribution service that harnesses the power of pay-as-you-go-technology to unlock clean energy for the next billion. PayGo is developing smart metering systems that enable customers to prepay for clean cooking gas. These smart metres monitor credit and gas consumption to help predict usage and provide portions of gas. This allows PayGo to provide an uninterrupted supply of affordable gas to their customers.
Our Investment
An investment of $800,000 is to help PayGo to finalise a field-ready product and test its product and service with household customers.
Progress to date
PayGo was acquired by Sun King in 2023. Sun King and PayGo Energy have joined forces to develop a range of clean cooking products and services to help families transition to clean, safe, and more environmentally friendly alternatives.
Why we invested
Important health challenge that disproportionately impacts low-income consumers who cannot afford clean cooking fuels.
Potentially cost-effective intervention in a sector with limited business model innovations.
Strong management team with experience running pilots.
PayGo Energy in numbers
Of Kenyan households are currently cooking using dirty fuels such as kerosene and charcoal
Size of the addressable market of urban households in Kenya who are currently purchasing kerosene